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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 14.00 | ACUITE B+ | Reaffirmed & Withdrawn | - |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 14.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed and withdrawn the long term rating of ‘ACUITE B+’ (read as ACUITE B plus) to the Rs.14.00 crore bank facilities of Tachocline Renewables Private Limited (TRPL).
The reaffirmation of rating on TRPL takes into account their weak financial risk profile and exposure to regulatory risk. These weaknesses are however, partly offset by its strong financial and operational support from Sagitaur Ventures India Private Limited (SVIPL). The rating has been withdrawn on Acuite's policy of withdrawal of raitngs. The rating has been withdrawn on account of the request recieved from the company, and the NOC received from the banker. Rationale for the reaffirmation The rating reaffirmation takes into account of the improvement in the operating income of the company, The rating also draws comfort from experienced promoter and the company’s long track record in the industry. These strengths are however, offset by the working capital intensive in nature of operations along with average financial risk profile. |
| About the Company |
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Incorporated in 2017, Tachocline Renewables Private Limited (TRPL) is a Bangalore based company engaged in solar power generation. TRPL is a special purpose vehicle (SPV) of Sagitaur Ventures India Private Limited(SVIPL). The company is running a 3 mega-watt (MW) solar power plant situated at Belagere in Chitradurga district (Karnataka). It has entered into a Power Purchase Agreement(PPA) with Bangalore Electricity Supply Company (BESCOM) on 17th June 2017, for 20 years at a tariff of Rs. 6.51 per unit(kWh) and the commercial operations of the plant had started in June 2017.
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Key Rating Drivers
| Strengths |
| Experienced management & support from strong player
TRPL is a special purpose vehicle (SPV) of Sagitaur Ventures India Private Limited (SVIPL). SVIPL is a Karnataka based company engaged in providing services in IT/Telecom, semiconductor, green energy, and core infrastructure. Further, SVIPL undertakes operation and maintenance of solar parks, provides land in developed solar park with required approvals and amenities. The promoter brings around three decades years of experience. Acuité believes SVIPL will continue to provide financial flexibility to TRPL. |
| Weaknesses |
| Working capital intensive nature of operations
The working capital-intensive nature of operations of the company is marked by high Gross Current Asset days (GCA) of 341 as on 31st March 2023 as compared to 414 days of 31st March 2022 due to significantly changes in high other current asset which consists of other deposit, prepaid expenses material on loans etc. However, the debtor days stood moderate at 72 days as on 31st March 2023 as compared to 130 days as on 31st March 2022. The inventory period stood relatively low at 05 days as on 31st March 2023 as compared to 03 days 31st March 2022 respectively. Acuité believes that the working capital management of TRPL’s will remain intensive given the nature of the industry. Exposure to regulatory risk TRPL continues to be exposed to regulatory uncertainty, given that the revenues are influenced by the regulatory framework governing the power sector. Acuité believes that the change in tariff could result in cash flow mismatch in the medium term |
| Rating Sensitivities |
| None |
| Material covenants |
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None |
| Liquidity Position: Adequate |
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The company’s liquidity position is adequate marked by net cash accruals of Rs.0.77 Cr as on 31st March 2023 as against Rs. 0.41 Cr. long-term debt repayment during the same period. The current ratio stood at 1.52 times as on 31st March 2023, as compared to 0.88 times as on 31st March 2023. The cash and bank balances stood at Rs. 0.20 Cr. 31st March 2023. However, the working capital-intensive nature of operations of the company is marked by Gross Current Assets (GCA) of 341 days as on 31st March 2023 as compared to 414 days as on 31st March 2022, due to high other current asset. Acuité believes that going forward the liquidity position of the company will remain adequate due to the improving net cash accruals.
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| Outlook: |
| Not Applicable |
| Other Factors affecting Rating |
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None |
| Particulars | Unit | FY 23 (Provisional) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 1.98 | 1.89 |
| PAT | Rs. Cr. | 0.77 | (0.98) |
| PAT Margin | (%) | 39.03 | (51.81) |
| Total Debt/Tangible Net Worth | Times | 1.55 | 2.10 |
| PBDIT/Interest | Times | 1.84 | 1.44 |
| Status of non-cooperation with previous CRA (if applicable) |
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None |
| Any other information |
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None |
| Applicable Criteria |
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• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on complexity levels of the rated instrument |
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In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in
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